The Asian Development Bank (ADB) has approved another $500-million policy-based loan to help the Philippine government expand economic opportunities in agriculture while ensuring near- to long-term food security for Filipinos.
“Extreme climate events and economic shocks are exacerbating the struggles of the agriculture sector to raise their productivity,” said Takeshi Ueda, ADB principal economist on natural resources and agriculture in Southeast Asia.
Inclusive sector
“This new loan aims to support the Philippines’ efforts to attain food security by building a competitive and inclusive agriculture sector that is characterized by improved efficiency, enhanced diversity, strengthened climate resilience and higher farm incomes,” Ueda said in a statement.
This latest loan supports Subprogram 2 of the Competitive and Inclusive Agriculture Development Program, which is aimed at further developing the agriculture sector with reforms in trade policy and regulatory framework.
Policy measures
Subprogram 2 continues support for policy measures introduced in Subprogram 1 that was approved in 2020 and related to rice trade liberalization.
Thus, the new subprogram supports effective rice buffer stock management for emergency situations and relief programs to ensure food security in the Philippines.
Also, the new loan promotes new government initiatives, including the provision of unconditional cash transfers to smallholder rice farmers and concessional loans to agriculture- and fishery-based micro and small enterprises and smallholder farmers and fisherfolk under COVID-19 recovery and other credit assistance programs.